Guide to what is Specific Identification Method. We explain the formula along with example and how to do, its advantages & disadvantages.

Dec 8, 2025 · The specific identification method tracks each inventory item separately from purchase to sale. It is ideal for managing high-value items or products with varying features and costs. This …

Mar 26, 2024 · Specific identification method of inventory valuation can be applied in situations where different purchases can be physically separated. Under this method, each item sold and each item …

The specific identification method relates to inventory valuation, specifically keeping track of each specific item in inventory and assigning costs individually instead of grouping items together.

Jan 9, 2026 · What is the Specific Identification Method? The specific identification method is used to track individual items of inventory. This method is applicable when individual items can be clearly …

Apr 18, 2023 · The specific identification method is a way of tracking inventory costs without the need for cost flow assumptions. It’s an inventory costing method that suits businesses with high-value, low …

Oct 31, 2025 · Specific identification involves tracking and recording the exact costs associated with each individual item of inventory as closely as possible. This method is most suitable for assets that …